SENATOR THE HON KATY GALLAGHER
MINISTER FINANCE
MINISTER FOR WOMEN
MINISTER FOR THE PUBLIC SERVICE
MINISTER FOR GOVERNMENT SERVICES
E&OE TRANSCRIPT
TV INTERVIEW
ABC AFTERNOON BRIEFING
THURSDAY, 22 MAY 2025
SUBJECTS: Superannuation; GST allocations; Coalition; floods; Nature Positive.
OLIVIA CAISLEY, HOST: Katy, thanks so much for joining us today. I wanted to turn first to these reports in The Australian today. So, we've seen former RBA Governor Philip Lowe and former Treasury Secretary Ken Henry speaking out against Labor's planned tax on unrealised capital gains. They're saying it's not good public policy. What's your response to that?
SENATOR THE HON KATY GALLAGHER, MINISTER FOR FINANCE: Well, I would say we consulted heavily on these changes some years ago. I mean, they've been sitting in the Senate now for a couple of years and we went through lots of different sets of consultations around them, and we went to the election with these reforms firmly on the table. We spoke about them in the election. And so, really, I think we've done the work and we've got, I think, the support to go forward with that. I'm hoping we can get them through the Senate.
CAISLEY: Do you think, though, that there's an alternative way to raise tax from wealthy superannuation funds without taxing those unrealised gains?
GALLAGHER: Well, I think these were all issues that were explored through the consultation around the best way to do it. And when we finished that work, this was the model that was finalised and put to the Parliament. I think it's no doubt you ask any number of people about their view on superannuation reform, you'll get probably exactly the same number of responses about what that should look like. But we've done a huge amount of work here and the reality is what we are making is a pretty modest change to go from highly concessional to still concessional, just less concessional arrangements for those high balanced super accounts.
CAISLEY: So, in your mind, done and dusted, irrespective of what Ken Henry and what Philip Lowe says?
GALLAGHER: Well, again, I think we've done the work. We know people provide commentary on this. It's not just those two, there's others. There's also those that speak in favour of it. So, this is the model that we did the work on. It's the legislation that we took to the election. We want to see that small but modest change made to super.
CAISLEY: What did you make of this letter that the Queensland Treasurer has written to Jim Chalmers? They're concerned about the GST carve-up and are calling for a rethink. Is that something you guys will consider?
GALLAGHER: Well, I don't think it's surprising that state treasurers write from time to time on these matters. I mean, for as long as I've been knocking around politics that's been happening. And there's always a view about changing allocations, particularly if it becomes more favourable to your state, and then there'll be views from other states and territories about what that means. We do have a formula that's used. It's a longstanding process that's used through the Commonwealth Grants Commission. We do have our agreement about no worse off and how we've been managing that with the changes that were made to WA's GST allocation. So, I think this is probably something that will continue to happen. We'll get requests from state treasurers, but there is the Commonwealth Grants Commission. It's a pretty well-established way of allocating GST.
CAISLEY: We've seen the Coalition at each other's throats this week. How much of a political gift is that to your side of politics?
GALLAGHER: Well, to be honest, I know it's probably driving a lot of interest through clicks online and watching stories, but for us, we're the first couple of weeks of a new government. We've been given a big job to do by the Australian people and that's what we've all been focused on. I've spent the last two weeks getting across all the issues in my portfolio and I know that's what the colleagues have been doing. Because really, our responsibility is less about what's happening on that side of the chamber and more about our day-to-day job, which is to deliver on what we promised at the election.
CAISLEY: Anthony Albanese signalled that he could take more of a hardline stance, say on staffing allocations, if this political divorce continues. Will you rule out making any changes to those entitlements?
GALLAGHER: Well, that really is a matter to be negotiated at a pay grade higher than mine, Liv. The PM, obviously, he has discussions with leaders of other parties across the parliament. There's an allocation at the moment. It's provided to the Opposition. You know, if there's changes based on that because of this separation, that's really a matter for the National and Liberal parties. It wasn't in our control that they decided to separate and there's obviously going to be consequences from that.
CAISLEY: I remember the days where you and Murray Watt were leading the charge in Opposition, scrutinising the Morrison Government's response to the COVID inquiry. You know how important the Opposition is in terms of having that sort of accountability role. How bad is this Coalition split when it comes to serving that purpose? Do you think that it could have an impact on democracy?
GALLAGHER: Well, we'll no doubt see how it plays out and there's stories that they might be coming back together. And a week really is a long time in politics when you're looking at what's going on on that side of the chamber at the moment. But you've got to remember, there's a lot of other representatives in the parliament, too. I think we've got a pretty well-established transparency and accountability regime. And if there is any vacation from the field, I imagine by the Coalition members or the former Coalition members, I imagine it would be taken up by other Members of Parliament. And as you say, those processes are really important and the Prime Minister and all of us respect the powers of the parliament and the job of the parliament to hold executive government to account. That's how we continue trust and strength in our democratic systems.
CAISLEY: We’re seeing terrible floods in New South Wales. Do you have any more information about potential funding or announcements that in that space to help those affected communities? And do you know when the Prime Minister will head there?
GALLAGHER: So, I guess we've all been watching with horror, you know, it just feels like month after month that part of our beautiful country is under pressure from extreme weather events. The normal disaster payments are being activated. So, there's a couple of different ones. One the Commonwealth runs, which are a longer-term payment around loss of income, if you're a business that's been affected. And then there's those more urgent payments to help people immediately. Both of those have been activated. The Commonwealth ones will come through Services Australia, the urgent ones get done through the New South Wales Government. But Kristy McBain is working with her colleagues in the New South Wales Government to make sure all assistance – and it's things like the ADF and other resources – are put where they need to be and that we are responding as one country to these urgent and extreme weather events. And on the Prime Minister, I think at times when the actual unfolding of the event is happening, it's not that useful to have people tromping around in these dangerous areas, but I have no doubt he will make the time when it's the best time for people who live in those areas and the emergency services that are managing this event right now.
CAISLEY: Just on the environment more generally, the Albanese Government wants to pass Nature Positive laws. Would that be an easier proposition if the Coalition remained divorced and you could just deal with the Liberals?
GALLAGHER: Well, potentially. Again, we have to see how some of this plays out. I think the opportunity to get that legislation through needs a willingness from other non-government parties in the Senate in particular to get involved and be prepared to talk with us. I think the message we got from the last time was that we couldn't reach agreement. Murray Watt's now doing a lot of that consultation, he's been in Perth the last couple of days, starting off consultation there, and we want to get those laws through. We want an independent EPA. And I think there's sounds that other Members of Parliament want that too. Business wants that. We need to provide some certainty and protect the environment at the same time. So, I'm hopeful it's a priority for us that we will be able to finally get that through the Senate.
CAISLEY: Katy Gallagher, thanks so much for your time.
GALLAGHER: Thanks for having me on.
ENDS
